Hi,
First, I'm not a Lawyer, and even if I was, Researchers provide
general information regarding subjects, and nothing else really. At
the very bottom of the page you will find some notice to that effect.
With that said, let's look at your question.
Yes, there is a Federal Agency which keeps an eye on these things, and
they are the FTC. After going over many of the laws and policies, it
appears that they are more concerned with the false reporting of those
who don't owe money, than those in the situation you are describing.
There are several areas in the Appendix B to Part 601 which could be
used to suggest you can do what you are wanting to do, without much
hassle from the FTC or the CRA's (Consumer Reporting Agency). I say
this only because he is willing to pay all the processing fees and the
money you lost due to sending this to collections. Once he has done
this, you can probably justify the use of the Duty to Correct and
Update Information portion of this, because he has no existing debt to
you at all. The only problem I see with this is that changes such as
these are normally made with in the first 90 days of the report to the
CRA. You suggest in your question that it has been over 5 months.
Prescribed Notice of Furnisher Responsibilities
Appendix B to Part 601
http://www.ftc.gov/os/statutes/2furnshr.htm
General Prohibition on Reporting Inaccurate Information:
The FCRA prohibits information furnishers from providing information
to a consumer reporting agency (CRA) that they know (or consciously
avoid knowing) is inaccurate. However, the furnisher is not subject to
this general prohibition if it clearly and conspicuously specifies an
address to which consumers may write to notify the furnisher that
certain information is inaccurate. Sections 623(a)(1)(A) and (a)(1)(C)
Duty to Correct and Update Information:
If at any time a person who regularly and in the ordinary course of
business furnishes information to one or more CRAs determines that the
information provided is not complete or accurate, the furnisher must
provide complete and accurate information to the CRA. In addition, the
furnisher must notify all CRAs that received the information of any
corrections, and must thereafter report only the complete and accurate
information. Section 623(a)(2)
Duties After Notice of Dispute from Consumer:
If a consumer notifies a furnisher, at an address specified by the
furnisher for such notices, that specific information is inaccurate,
and the information is in fact inaccurate, the furnisher must
thereafter report the correct information to CRAs. Section
623(a)(1)(B)
If a consumer notifies a furnisher that the consumer disputes the
completeness or accuracy of any information reported by the furnisher,
the furnisher may not subsequently report that information to a CRA
without providing notice of the dispute. Section 623(a)(3)
Duties After Notice of Dispute from Consumer Reporting Agency:
If a CRA notifies a furnisher that a consumer disputes the
completeness or accuracy of information provided by the furnisher, the
furnisher has a duty to follow certain procedures. The furnisher must:
Conduct an investigation and review all relevant information provided
by the CRA, including information given to the CRA by the consumer.
Sections 623(b)(1)(A) and (b)(1)(B)
Report the results to the CRA, and, if the investigation establishes
that the information was, in fact, incomplete or inaccurate, report
the results to all CRAs to which the furnisher provided the
information that compile and maintain files on a nationwide basis.
Sections 623(b)(1)(C) and (b)(1)(D)
Complete the above within 30 days from the date the CRA receives the
dispute (or 45 days, if the consumer later provides relevant
additional information to the CRA). Section 623(b)(2)
Duty to Report Voluntary Closing of Credit Accounts:
If a consumer voluntarily closes a credit account, any person who
regularly and in the ordinary course of business furnishes information
to one or more CRAs must report this fact when it provides information
to CRAs for the time period in which the account was closed. Section
623(a)(4)
Duty to Report Dates of Delinquencies:
If a furnisher reports information concerning a delinquent account
placed for collection, charged to profit or loss, or subject to any
similar action, the furnisher must, within 90 days after reporting the
information, provide the CRA with the month and the year of the
commencement of the delinquency that immediately preceded the action,
so that the agency will know how long to keep the information in the
consumer's file. Section 623(a)(5)
Legal Aspects of Consumer Credit Reports
http://www.businesses1.com/sbc/aboutcon.htm
Federal Trade Commission
http://www.ftc.gov/
Fair Credit Reporting Act
http://www.ftc.gov/os/statutes/fcrajump.htm
First I would have him pay you and have something written up between
you that you are not responsible if the CRA decides to keep the record
open, or how long it stays open before being closed/changed/deleted.
That you will report the inaccuracy, or rather the hasty report, and
that is all you can do or be responsible for. I would have that in
writing between you and cash the check before proceeding.
http://www.ftc.gov/os/statutes/2-fedreg.htm
12. One CRA accurately pointed out that it is not technically correct
to imply that a CRA must "remove" outdated accurate information from
its files, because such data may be retained to be reported in
situations listed in Section 605(b) where the obsolescence provisions
do not apply. However, it is common practice for credit bureaus to
delete information from their files before the time periods set forth
in Section 605; thus, it makes sense that Section 609(c)(2)(E) should
direct that a summary, as opposed to a legal brief, include a
statement concerning limits on the CRA's duty to "remove" outdated
data.
Thanks for the question and good luck with your business,
webadept-ga |
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